Kingfisher Airlines has a debt of US$2.5 billion.
It’s been a terrible week for Kingfisher Airlines.
The Indian airline lost its flying license on Monday, and was told by the Indian government’s Directorate General of Civil Aviation (DGCA) to pay employees their past-due salaries in order to resume operations.
The Mumbai-based carrier has not operated a single flight since its engineers and pilots went on strike in October 2012.
The Economic Times reported in November that the airline had not paid most of its 4,000 employees since May.
Kingfisher Airlines filed a third revival plan with the DGCA on Christmas Eve in an effort to save its license, but received a stern list of preconditions from unimpressed officials on December 29.
The company has a debt of US$2.5 billion.
“Despite the impending expiry of its License tonight, there is no cause for concern as the regulations permit License renewal within two years of expiry,” the airline said in an optimistic statement released on December 31.
“Kingfisher Airlines is confident of securing approval from the DGCA on the restart plan, License approval and reinstatement of its AOP (Annual Operating Plan)."
In December, Kingfisher Airlines confirmed that it was in talks with Abu Dhabi-based Etihad Airways for an equity investment in the company following the Indian government’s relaxed restrictions on foreign ownership.
Aviation Week reported that Etihad was also negotiating a deal with Kingfisher Airlines’ local competitor Jet Airways.
The Indian airline lost its flying license on Monday, and was told by the Indian government’s Directorate General of Civil Aviation (DGCA) to pay employees their past-due salaries in order to resume operations.
The Mumbai-based carrier has not operated a single flight since its engineers and pilots went on strike in October 2012.
The Economic Times reported in November that the airline had not paid most of its 4,000 employees since May.
Kingfisher Airlines filed a third revival plan with the DGCA on Christmas Eve in an effort to save its license, but received a stern list of preconditions from unimpressed officials on December 29.
The company has a debt of US$2.5 billion.
“Despite the impending expiry of its License tonight, there is no cause for concern as the regulations permit License renewal within two years of expiry,” the airline said in an optimistic statement released on December 31.
“Kingfisher Airlines is confident of securing approval from the DGCA on the restart plan, License approval and reinstatement of its AOP (Annual Operating Plan)."
In December, Kingfisher Airlines confirmed that it was in talks with Abu Dhabi-based Etihad Airways for an equity investment in the company following the Indian government’s relaxed restrictions on foreign ownership.
Aviation Week reported that Etihad was also negotiating a deal with Kingfisher Airlines’ local competitor Jet Airways.
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